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Södra Wood changes its industrial structure to elevate competition

 Thursday, February 1, 2024

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Södra Wood changes its industrial structure to elevate competition

Södra Wood is consolidating its sawn timber operations to further strengthen its market position. The company is taking such concrete step to develop an even more competitive industrial structure over time. It further aims to achieve economies of scale by relocating production volumes to Södra Wood’s larger production units.

Södra’s mission is to strengthen the value of family forestry by ensuring that the mills process raw materials in the most profitable was is possible by constantly strengthening competitiveness. In the recent years, the company has experience major external changes that have affected the market for wood raw material, while demand for sawn timber has slowed.

To strengthen and future-proof Södra Wood’s competitiveness, the industrial structure will be changed in 2024 and the units in Åtvidaberg and Ramkvilla will be closed down. The unit in Klevshult will be converted to a processing unit developed towards planing and the sawmill operations will be discontinued. Parts of Södra’s unit in Torsås will be closed down and the remainder put up for sale. The assessment is that these changes will make 61 employees redundant.

“We operate in a competitive industry where it is important to keep our eyes on the horizon and work with continuous improvement. This decision has been made to strengthen our position and to gradually build up an even more competitive operation, where the offering to Södra Wood’s customers is at least as attractive tomorrow as it is today. It is always difficult when a change affects employees and we will offer the best possible support to those affected throughout the process,” said Marcus Åsgärde, President of the Södra Wood business area.

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